Buying a house is a huge decision. For most people, it will be the biggest purchase they will ever make. Because of this, you won’t want to just dive right in and buy the first house you fall in love with. Before you buy a house, be sure you can answer these six questions:
1. Can you afford the house?
Make sure you get your finances in order before you begin house hunting. You need to know exactly what your budget is or else you could end up buying a house you simply cannot afford. Keep in mind all of the closing costs associated with purchasing a house as well as additional ongoing costs, such as insurance, property taxes, maintenance and more. You should also get pre-approved for a mortgage. Just because you think you can afford a house doesn’t mean you can secure the amount you need to buy it.
2. Is the house priced fairly?
Just because you can afford to pay the price on the sticker doesn’t mean that you should. A real estate agent can help you determine if the price of the house is fair by comparing it to the price of similar houses that were sold within the same area over the past six months. Even if you’re willing to overpay, you may run into problems closing on the property if you’re taking out a mortgage and the lender’s appraisal doesn’t meet the price of the house.
3. What is the history of the house?
Sellers are required to disclose everything they know about the house, so make sure you request maintenance records, repair records, and more. This can tell you a lot about the condition of the home. For example, owners that can provide records of regular maintenance has most likely taken care of their homes. However, a house that has had too many repairs in specific areas, such as the roof, can be a red flag. You don’t want to buy into a house with ongoing problem areas.
4. How is the neighborhood?
Location is extremely important. The house may be absolutely perfect, but if it’s in a crime-ridden neighborhood, then perhaps it’s too risky. Some of the things you should take note of include how close the neighborhood is to a major road, the quality of the school district, how far away the area from your workplace, whether any construction is planned in the neighborhood in the future, and more.
5. Is there anything wrong with the house?
Home inspections are extremely important because they will reveal any potential issues. If the house needs a new roof, you may not want to buy it. While the owner may be willing to drop the price to compensate for repair costs, you may not want to deal with having to make repairs after you buy a house.
6. Why is the owner selling?
Figuring out why owners are selling can give you more negotiating power. For example, if they need to move across the country for a new job, then they will be in a hurry to sell and you may be able to negotiate a lower price.
Finding the house you want to buy is incredibly exciting, especially if you’ve spent much time house hunting for the “perfect” home. However, it’s important that you know the answers to these six questions before you make an official offer to purchase. For more home buying tips, be sure to contact us at Burnett Real Estate Team today.